Drivers pay 5 cents a litre for gasoline!

[donna]

Umm but would you want to be in the place where there is happening?

http://www.propertytalk.com/content/view/919/62/

Probably not!

Cheers,

Donna

[muppet]

Hi Guys

Oh those poor Americans, now paying lots more for their petrol.

Area gas prices jump 21 cents in week
Here's why we're paying so much – and a look at what the future might hold.
STAFF AND WIRE REPORTS

Friday, August 19, 2005

Gasoline prices in Central Texas jumped 21 cents a gallon in the past week, the largest increase in a 7-day period on record, according to AAA Texas.

"For the first time ever, consumers are seeing weekly gasoline increases of 20 cents or more for some cities," said Rose Rougeau, a AAA spokeswoman. "Unfortunately, motorists may see more upward movement at the pumps before prices start to fall."

Locally, the 21-cent increase follows a 12-cent increase reported last week. On average, regular-grade gasoline is costing local motorists $2.48 a gallon, 74 cents more a gallon than a year ago.

So why are gasoline prices so high? Why have they shot up so fast? Why don't they fall back just as quickly when the price of oil dips in global markets?

Here are some answers to such questions.


Q: Why are gas prices so high?

A: Global demand for oil has grown quickly in recent years, driven up especially by China's and India's fast-growing economies, although the United States remains by far the biggest oil consumer. Global demand for oil is now about 84 million barrels per day. That almost equals the entire supply available; global oil production capacity exceeds demand by only about 1.5 million to 2 million barrels per day.

In addition, with the supply-demand balance so tight, markets fear that any disruption in supply could spark shortages. So buyers are willing to pay higher prices today to ensure that they'll get what they need tomorrow if supplies are short.


Q: Why did oil prices rise so quickly?

A: The price of crude oil jumped dramatically in recent weeks in part because of heightened fears of shortages. Oil traders are particularly nervous about forecasts of a busier than usual hurricane season in the Gulf of Mexico.

Other factors included temporary shutdowns at some U.S. refineries and U.S. government warnings of possible terrorist attacks in Saudi Arabia, the world's biggest oil producer.


Q: Oil contracts typically are for delivery a month out, so why did gas prices jump along with oil prices instead of a month later?

A: Gasoline retailers say wholesalers are raising costs to gas stations almost immediately as oil prices rise. Dealers then pass on that cost to customers as soon as they take delivery from tanker trucks.


Q: After rising last week to more than $67 per barrel, oil prices are falling this week, to $63.59 on Thursday. Why didn't gas prices drop too?

A: Rockets and feathers. It's an industry expression to say prices rocket up but drop as slowly as a feather.


Q: Is this the peak?

A: Oil analysts have said prices may well exceed $70 a barrel, and a shock event could drive them over $100 a barrel. Gasoline prices would rise proportion- ately.


Q: Is relief in sight?

A: Historically, gas prices tend to dip after Labor Day, when the peak summer driving season ends. But as refiners shift their mix to produce home heating oil, they'll produce less gasoline, which could keep supplies tight and prices high.


Although local gasoline prices in the past week rose 21 cents a gallon to $2.48, other markets in Texas saw even larger increases.

News source:

http://www.statesman.com

Regards

[muppet]

Hi Guys

And for those who want to compare prices being paid in the United Kingdom read on:

Who's charging the most for a tank of petrol?

Most expensive: Hockliffe Service Station charges 97.9p for unleaded and 1.02 for diesel and can't fit the prices into its display board

Price war: Tesco sells unleaded at 88.9p while Esso charges 89.9p

OVER the years the number of petrol stations has fallen dramatically while the price of petrol has rocketed.

Whatever vehicle you drive the cost of filling up the tank today compared with a year ago has risen sharply.

More than ever drivers are fuming over the cost of fuel. A Luton/Dunstable on Sunday reporter and photographer toured the area to tot up who's charging what.

Not surprisingly the cheapest places for fuel are the supermarkets.

Tesco charges 88.9p a litre for unleaded as does Sainsbury's and Asda.

But what about the other petrol stations?

Here's what we found: (All prices are for unleaded petrol per litre.)

• Q8 on Chalk Hill, Dunstable, charges 94.5

• Total on East End in Houghton Regis charges 89.9

• Esso on High Street North, Dunstable charges 89.9

• Esso on Hitchin Road in Luton charges 89.9

• The Barton Road Service Station on Barton Road, Luton charges 95.2

• Shell on London Road, Luton charges 88.9

• BP on Leagrave High Street charges 91

• Albion Service Station in Dunstable charges 89.9

• Hockliffe Service Station on Watling Street, Leighton Buzzard charges 97.9

• Georgina Service Station, High Street, Houghton Regis charges 89.9

• Majestic Filling Station on Trinity Road, Luton charges 91.9

• Priory Service Station, High Street South, Dunstable charges 91.9

• BP Petrol Station, New Bedford Road, Luton, charges 91.9

• Shell, Eaton Green Road, Luton charges 88.9

The most expensive petrol locally is at Hockcliffe Service Station, Watling Street, where a litre of unleaded will cost you 97.9 pence and diesel £1.02 a litre.

The prices can't even be displayed properly because the figures will not fit onto the display board.

The manager, who refused to give his name, fumed: "I'm struggling because I'm an independent. Supermarkets are being subsidised with baked bean sales. These changes are making my life very hard.

"Every time I get an invoice for petrol it goes up by around £500."

AA spokesman Luke Bosdet said: "Drivers are frustrated with high petrol prices but they understand why it happens. Motorists have spent seven to eight million pounds more on petrol because of the increase in prices since January - this has an effect upon the economy.

"Built up areas like Luton are better off than areas in the country because of fierce competition especially from the supermarkets who have a lot of muscle.

"Rural petrol stations have to charge higher prices because of higher overheads and less competition."

At the Esso service station in Hitchin Road Nick Tomlin from Round Green in Luton said: "The price of petrol is extortionate but drivers have to pay up. There is not much you can do about it if you want to drive."

We still have reasonably inexpensive petrol and diesel in NZ.

Regards

[spaceman]

Not as cheap as it seems

I was working in Iraq for several months a little over two years ago.

Then the price of gas was about 1 cent (yes one cent) per liter.

If my maths is correct then they have had about 500% inflation in 2 years ..... thats kind of sucky if you ask me.

I would think that there would be a few insurgents here in NZ if the same thing happened to our gas prices here

.... so all those complaining about hi prices here ... think back to the mid 80's when gas first hit the $1 mark and now 20 years later it's around $1.50 ..... now think about house prices in the mid 80's compared to today and I'll bet you that the price has gone up by more than 50%

... gas is cheap in NZ stop whining ... where I live now (Ivory Coast) one liter of gas cost's the equivalent of 1/3 (one third) of the DAILY minimum wage. Buy 3 liters of gas and that is a days wage for a big chunk of the population ...... my car (4x4 Prado) has a 180 liter tank ... it costs more than the entire monthly wage of the guy filling it up to fill it up once ... when it gets that bad in NZ you can start whining again.

Cheers
Spaceman